ETF News

MOVES-Asset manager Blackstone to hire former top SEC lawyer -source

NEW YORK, May 10 (Reuters) - Blackstone Group is hiring a former top enforcement lawyer at the U.S. Securities and Exchange Commission, a source said on Tuesday, less than a year after the world’s largest alternative asset manager was fined by the regulator for failing to disclose certain fees.

Marshall Sprung, former co-chief of the asset management unit at the SEC’s division of enforcement, will join Blackstone as a managing director and global head of compliance, said the source who declined to be named because the appointment has not been announced.

Sprung left the SEC last month, according to a statement on the regulator’s website. Sprung declined to comment on Tuesday.

New York-based Blackstone paid about $39 million last October to settle claims that it failed to disclose certain types of fess that it charged to companies it was invested in.

The payment was the second major case in the SEC’s ongoing crackdown into what it saw as an industry problem regarding some fees that buyout firms charge.

In response to the greater regulatory scrutiny, U.S. private equity firms are investing more time and money in compliance.

Bloomberg News earlier on Tuesday first reported Sprung’s move to Blackstone.

Reporting by Koh Gui Qing; Editing by Richard Chang